Oct 29 (Reuters) - Activision Blizzard Inc raised
its annual adjusted sales forecast on Thursday, betting on
strong sales for its upcoming videogame in the blockbuster "Call
of Duty" franchise as demand from stay-at-home gamers continues
The company raised its full-year adjusted revenue forecast
to $8.10 billion from $7.63 billion. Analysts had expected
adjusted sales of $7.94 billion, according to IBES data from
Shares of the company, which fell 8% immediately after the
results as some analysts viewed the improved forecast as
conservative, pared most of the losses and were down marginally
after the bell.
"Activision has been typically conservative going into the
next quarter. Many stocks are seeing automatic 'sell the news'
on earnings reports good or bad ahead of elections. Activision
caught in that too," Elazar Advisors analyst Chaim Siegel said.
Big-budget videogame makers are preparing to tap the demand
surge from stay-at-home players as next-generation consoles
enter the market this holiday season. Activision is releasing
"Call of Duty: Black Ops Cold War" on Nov. 13, closely following
the launch of Sony Corp's PlayStation 5 and Microsoft's
Xbox Series X.
Demand from players continues to boost videogame sales, as a
surge in COVID-19 cases in several parts of the country has
forced people to remain indoors.
Data from research firm NPD showed nearly $34 billion in
videogame sales between January and September this year, up 21%
compared to the same period a year earlier.
The company also topped third-quarter adjusted sales
estimates on strong sales of "Call of Duty: Modern Warfare" and
forecast holiday-quarter adjusted revenue of $2.73 billion,
above Wall Street estimates of $2.63 billion.
(Reporting by Ayanti Bera in Bengaluru;
Editing by Vinay Dwivedi)